Waec Model Questions Vol1 2019 Economics Question 6
Practice objective / multiple choice question 6 from the 2019 Waec Model Questions Vol1 Economics examination.
Country X imports wheat at a world price of $200 per ton. The government imposes a specific tariff of $30 per ton on the first 500 tons (quota) and a 10% ad valorem tariff on any imports above the quota. Domestic demand for wheat is 800 tons and domestic supply is 200 tons. The export price of wheat (for the country's own export sector) remains $250 per ton. Calculate (a) the equilibrium import price after the tariff policy, (b) the total quantity imported, and (c) the percentage change in the terms of trade (export price ÷ import price) compared with the situation before the tariff. State whether the terms of trade improve or deteriorate.
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About This Question
This is Waec Model Questions Vol1 2019 Economics Question 6. It is one of the objective questions from the 2019 Waec Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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